Forgive me but Rage uses baked shadows for the most part mixed with real time shadows? Time of day progression in Elder Scrolls wouldn't be that compatible surely?

Rage supports proper real-time lights and shadows, they just happened to bake the light information in the game to get 60fps game with high quality lighting for consoles.
Also, one can bake light information of moving light if one wants.

Actually a properly implemented virtual texturing can be very nice for realtime environment lighting.
You have a texture atlas with nice 128x128 texel chunks, use extra layer of texture for main and ambient light for baking during gameplay.
This would allow framerate independant rendering of lighting for non moving surfaces, which you could combine with realtime shadows. (bake non-moving shadows to direct light buffer.)

Rage supports proper real-time lights and shadows, they just happened to bake the light information in the game to get 60fps game with high quality lighting for consoles.
Also, one can bake light information of moving light if one wants.

Actually a properly implemented virtual texturing can be very nice for realtime environment lighting.
You have a texture atlas with nice 128x128 texel chunks, use extra layer of texture for main and ambient light for baking during gameplay.
This would allow framerate independant rendering of lighting for non moving surfaces, which you could combine with realtime shadows. (bake non-moving shadows to direct light buffer.)

Even to this day, the graphics in that tech demo are amazing, imo. Not many new games achieve that high an image quality.

FO3 was Oblivion with guns, and it was still a very good game. What's your point?

I think it's going to be the same thing rehashed all over again.... now, granted I did enjoy FOV and really liked oblivion and morrowind but I'm ready to see them take the next step forward with everything about the game.

I predict fallout 3 with swords and magic... I'm calling it now and I'll bump the thread a year from now when I'll probably be right.

Well yeah, if you put it down to it's simplest form but they're both good games and I'd like more with less bugs, better graphics. I mean essentially, that's what the new version of games are, revolutionary versions are pretty rare and if more of the same works, they stick with it.